Is 2022 a Good Time to Sell Your Home?

Maybe you've been considering a bigger home for the family or downsizing now that the kids have flown the coup, maybe you're relocating for a new job. Regardless of the reason, if you're wondering if 2022 is an ideal time to sell your Charleston home, I've got the info you should know. I'll give you some reasons why you should, and a few reasons why you should think twice.

You May Get the Best Price Possible 

2020 saw historically low-interest rates which kicked off the seller's market we're experiencing now. And, even though we've seen some increases in mortgage rates since then - rates are still competitive. Couple that with a diminishing home inventory and a surge in buyer demand, and the market conditions in 2022 find Charleston homeowners (aka would-be sellers) with an advantage. Because as housing inventory struggles to keep up with buyer demand, real estate markets with homes for sale are seeing offers over list price and bidding wars which ultimately benefit you as the seller. "As of late April, there were 40% fewer homes on the market compared to last year...(fool.com)"

You May Struggle to Find A New Home, Though

One thing to keep in mind when considering the sale of your home: Although you may find your home quickly under contract after only a few days on the market - with multiple above asking-price offers - the same will hold true for you when you become a potential buyer and start looking for your new home. One way this can still benefit you as a buyer is this: If you're considering downsizing or relocating, the higher sale price you get for your home could allow you more buying power for a smaller home or one in an area with a lower price point.

Why You Should Sell 

A lot of potential home sellers avoided putting their home on the market for a number of personal factors: Their own concerns for travel, refinancing their home with the low-interest rates, and not wanting tons of people roaming through their home during the coronavirus pandemic. So as more and more people get vaccinated against COVID-19, we could see an increase in their willingness to put their homes on the market and increase available inventory. In addition, as lumber prices continue to drop, new construction will begin to pick up around the Charleston area which will also contribute to an increase in inventory. Houwzer.com also mentions that a backlog of foreclosures exist that have yet to hit the market - if and when that begins to happen home prices can begin to drop and your chance of getting the current prices will drop as well. Therefore, you may want to consider choosing an experienced real estate agent and putting your home on the market while there's still low competition with other homes. As more and more homes become available for sale, home prices will correct themselves and you could see potential profits shrink.

Why You Shouldn't Sell

If you refinanced your current home when mortgage interest rates dropped to all-time lows in 2020, you're most likely in a better place financially with your current monthly mortgage payment. Purchasing a new home, and the associated costs it comes with could negate the work you did and put you in a less than ideal situation in the current housing market. Speaking of costs, there's an old saying, "There's no such thing as a free puppy" and the same is true with a new home purchase. The purchase price is only one part of the overall costs; closing costs, property taxes, etc. are all things that can add up if you're not prepared. So, you should be sure of your financial situation before taking the plunge.

Bottom Line: A Buyers Market Will Return 

In the end, this seller's market will eventually begin to wind down in favor of the buyer. Home inventories will correct themselves and the average home price will begin to stabilize as we return to a more balanced housing market. The big question is when will it happen? So, current homeowners should weigh the current market conditions, check to see what their home is currently worth and decide if now is the right time or if they should wait. If you've been wondering about selling your home, GET IN TOUCH. I'm happy to discuss your options and give you an estimate on what you could expect to make from the sale of your home.